List of industries with conditional market access for foreign investors

Sectors with conditional market access for foreign investors (foreign investors) are sectors in which, in order to participate, investors must meet certain market access conditions according to the provisions of law in order to participate. economic development and protection of national security. The article below will summarize the list of industries with conditional market access and market access conditions for foreign investors.

What is the role of market access?

Market access is considered the first step and plays an extremely important role in attracting foreign investment capital, contributing to promoting import-export industries. In addition, market access also creates opportunities for domestic businesses to learn technology and experience from advanced countries.

Understanding market access conditions will help investors determine the long-term path for their businesses as well as build specific detailed plans and directions for product and service deployment. accordingly.

Sectors with conditional market access for foreign investors

Based on Section B, Appendix I issued with Decree No. 31/2021/ND-CP, conditional market access occupations for foreign investors include 59 occupations as follows:

1. In the fields of production, business and assembly:

• Production and distribution of cultural products, including video recordings;
• Production, distribution, and screening of television programs and works of music, dance, theater, and cinema;
• Paper production;
• Production of vehicles with over 29 seats;
• Production of construction materials;
• Production and manufacturing of aircraft;
• Production and manufacturing of railway locomotives and rolling stock;
• Producing and trading tobacco products, tobacco ingredients, machinery and equipment in the tobacco industry;
• Betting and casino business;
• Real estate business;
• Logistics service business;
• Cemetery business, cemetery services and burial services;
• Assembling motorbikes.

2. In the service sector:

• Postal and telecommunications services;
• Advertising services;
• Printing services, publication distribution services;
• Surveying and mapping services;
• Photography service from above;
• Educational services;
• Security services;
• Legal services;
• Veterinary services;
• Technical testing and analysis services;
• Travel services;
• Health services and social services;
• Sports and entertainment services;
• Domestic retail goods collection service;
• Auditing, accounting, bookkeeping and tax services;
• Price appraisal service; Consulting on determining enterprise value for equitization;
• Services related to agriculture, forestry and fishery;
• Waste collection services, environmental monitoring services;
• Commercial arbitration and arbitration mediation services;
• Services related to sports, fine arts, performing arts, fashion shows, beauty and modeling contests, and other entertainment activities;
• Air transport support services; Ground technical services at airports and aerodromes; on-board meal service; navigation and surveillance information services, aviation meteorological services;
• Shipping agency services; ship towing services;
• Services related to cultural heritage, copyright and related rights, photography, video recording, sound recording, art exhibitions, festivals, libraries, museums;
• Services related to tourism promotion and promotion;
• Representative services, recruitment agents, scheduling and management for artists and athletes;
• Family-related services;
• E-commerce activities;
• Providing radio and television broadcasting services;
• Insurance; bank; securities trading and other services related to insurance, banking, and securities trading;
• Seeding and chemical spraying services by plane;
• Marine pilot service.

3. Some other fields:

• Exploration, exploitation and processing of natural resources, minerals, oil and gas;
• Hydropower, offshore wind power and nuclear energy;
• Transporting goods and passengers by rail, air, road, river, sea, and pipeline;
• Raising and growing aquaculture products;
• Forestry and hunting;
• Construction, operation and management of river ports, seaports and airports;
• Goods purchase and sale activities and activities directly related to goods purchase and sale activities of foreign service providers in Vietnam;
• Developing and operating traditional markets;
• Commodity Exchange Operations;
• Publisher’s activities;
• Building and repairing ships;
• Coastal shipping;
• Cultivation, production or processing of rare crops, breeding of rare wild animals and processing and handling of these animals or plants, including live animals and products from they;
• Construction and related technical services;
• Investment sectors and trades follow the pilot mechanism of the National Assembly, the National Assembly Standing Committee, the Government, and the Prime Minister.

These are industries that foreign investors can invest in Vietnam, but must meet certain conditions, depending on domestic law and international commitments to which Vietnam is a member.

Conditional market access for foreign investors

Pursuant to Article 9 of the Law on Investment 2020 and Article 15 of Decree No. 31/2021/ND-CP, regulations on conditional market access for foreign investors are as follows:

1. Foreign investors are subject to conditional market access as prescribed for domestic investors, except in cases of restricted industries or no market access;
2. Must meet the conditions on charter capital ownership ratio, investment form, scope of operations and capacity appraisal requirements;
3. Meet the following conditions (if any):

• Use of land and labor; natural resources and minerals;
• Production and supply of public goods and services or state monopoly goods and services;
• Owning and trading in housing and real estate;
• Applying forms of State support and subsidies to a number of industries, fields or developing regions and territories;
• Participate in programs and plans to equitize state-owned enterprises.

Foreign investors are not allowed to invest in any industry or profession in Vietnam

According to Article 6 of the Law on Investment 2020, industries and occupations banned from business investment in Vietnam include:

• Trading in narcotics;
• Trading in chemicals and minerals;
• Trading in specimens of wild plants and animals;
• Trading in specimens of endangered, precious, and rare species of forest plants, animals, and aquatic products Group I;
• Prostitution business;
• Buying and selling humans, tissues, corpses, body parts, human fetuses;
• Business activities related to human cloning;
• Trading in firecrackers;
• Debt collection service business.

In addition to conditional market access industries, the Law on Investment 2020 also clearly stipulates industries and occupations that foreign investors are not allowed to invest in Vietnam.

Consulting and introducing industries with conditional market access for foreign investors

Understanding information about conditional market access industries helps investors build appropriate business plans and meet market access conditions. Through this article, Long Phan is always willing to support customers in the process of accessing the market as well as necessary notes for effective implementation. Our consulting services include:

• Consulting on legal regulations related to market access industries and occupations for foreign investors;
• Support checking the feasibility of investment industries in accordance with regulations;
• Answer questions throughout the implementation process, after searching the list of occupations with conditional market access;
• Comprehensive support for businesses in applying for investment registration certificates.

To invest and do business successfully and avoid legal risks, foreign investors need to clearly understand and comply with regulations on conditional market access industries for foreign investors. Together with a team of experienced experts, Long Phan will support customers in effectively searching for conditional market access occupations. Please contact the hotline immediately 0906735386 for more specific and detailed advice.